• 556 days Will The ECB Continue To Hike Rates?
  • 556 days Forbes: Aramco Remains Largest Company In The Middle East
  • 558 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 958 days Could Crypto Overtake Traditional Investment?
  • 962 days Americans Still Quitting Jobs At Record Pace
  • 964 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 967 days Is The Dollar Too Strong?
  • 968 days Big Tech Disappoints Investors on Earnings Calls
  • 969 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 970 days China Is Quietly Trying To Distance Itself From Russia
  • 971 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 975 days Crypto Investors Won Big In 2021
  • 975 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 976 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 978 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 978 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 982 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 982 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 982 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 985 days Are NFTs About To Take Over Gaming?
What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

  1. Home
  2. Markets
  3. Other

SDOW (3xShort Dow ETF): Bullish Watchlist

Reason: Potential Inverted Head & Shoulder with theoretical target at 33.

In the daily chart below we can see that price has formed a likely IHS, although the right shoulder would look better if price "works" sideways a bit more before breaking out.

The positive divergence and the bullish cross of the MACD (In addition to the histogram above the zero line) are favouring a break out of the sideways pattern developed since the beginning of March.

SDOW Daily Chart
Larger Image

If we zoom in the shorter time frame we can see that Wednesday's Inverted Hammer (Usually a "bottoming" candlestick) has been followed by yesterday's sharp advance. The negative divergence of the RSI (5) should suggest that this is not yet the breakout move, instead it price could consolidate a bit before the kick-off.

In a strong up trend usually the 20 dma should hold, anyway as long as yesterday's lod is not breached the bullish pattern will not be busted.

Therefore the idea is no to chase price higher, instead wait and if there is a pullback, probably in the area of the 20 dma step in with a stop below yesterday's lod.

Since next Tuesday I will be on holiday I will not get involved.

SDOW Daily Chart 2
Larger Image

Yesterday I learned an important lesson that I wont to share:

I decided to anticipate the setup with a tight stop so I bought it at the open but instead of letting it go, without a technical reason, I suddenly sold the position because I was filling sick. So if you don't fill well and you are trading leveraged ETF do it only if you have a sound reason but afterwards push the stop button shut down the computers and go to bed.

 

Back to homepage

Leave a comment

Leave a comment